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CHART OF THE DAY: HOMEBUILDERS COMPOUNDING THE PROBLEM

28 June 2009 by Cullen Roche 1 Comment

As the builders keep adding to the supply glut in the real estate market they are only compounding the problem.  A nasty little twist has occurred as foreclosures mount and homebuilders try to compete with ultra low pricing available in the existing home market.  The builders are not only adding to the supply glut, but forcing prices down as they do so….

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Cullen Roche

Cullen Roche

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Comments
  • Shanky

    Some banks are not willing to let prices fall on specific properties. In discussions with one vp of credit, the value of cretain homes in our area of GA are not being alloed to drop. The banks are getting valid and secure offers on homes. One example is a home around the corner in foreclosure listed at 1.4mm, had offers of 1.1 mm and they turned this down. Bank is Suntrust. UH, STI is getting its ass handed to it and I would think that 1.1mm would be nice to have in cash. Note that three bankers live in the neighborhood. I have mixed feelings on this. Manipulation is bad, but a manipulated comp on my property is helping keep my porp value overstated from current real values. At this point the games need to end and real needs to be real no matter the cost to all of us. Valuations will find a way home. Like I tell my jids there is an easy way and a hard way. Make your choice.

    Thanks for your great work TPC.

    06/28/2009 at 6:03 AM